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Thinking of upgrading my RAM from 2 GB (2 x 1GB @ 667 MHz) and have a couple of questions.

1 Do I need to upgrade my RAM, and where will I see performance upgrades.

I like keeping at least 4 apps open at a time with an additional 2 more on occasions. I run iTunes, Safari, Mail, Adium, and sometimes things like Photoshop, Illustrator, Pages, and Finder windows. So far my computer hasn't hiccuped and has been running the same as day one.

2 I've heard great things about Crucial, is it top of the line/ is the quality great?

1.) Whether you need to or not is entirely a personal choice. That said you will likely see a performance boost.

2.) Crucial is the retail arm of Micron, one of the larger chip manufacturers. I would imagine their parts are fine on quality and they aren't going anywhere for the foreseeable future so your warranty should be good.

3.) PC2-5300 = DDR2 667 so that is the right part

4.) Depends on what you are doing in Photoshop. Most of your activity in PS is related to RAM (A common benchmark for testing RAM upgrades is large memory-intensive photoshop macros)

Considering how inexpensive an upgrade it is for the performance you gain, I would say go ahead and do it. Better to have it and not need it and all that jazz.

Some other brands to look into:
Mushkin - Part 971599A (single module) or 976559A (4gb kit)Link
Newegg Link ($68.99 after MIR) - Link
OWC - Also good stuff. Pricing is probably better than Crucial as wellLink